Revolut, Starling Bank, N26, Chime … all these neobanks with millions of customers would surely have dreamed of seeing their capital Billionaire Warren Buffett and his investment firm Berkshire Hathaway.
Such an event has been for a long time the order of the impossible. The portfolio of companies in which the man was involved included only traditional institutions in the banking sector.
The twist came on Monday when the Brazilian Neobank Nubank announced a new $ 750 million financing transaction for a G-Series add-on in January.
Its name is unknown to radars in Europe, yet it is the first neo bank in the world with more than 40 million customers. For its part, Berkshire Hathaway has injected $ 500 million and has piqued optimism for an entire sector.
The first neo bank in the world
The most unusual thing in Nubank’s history is that unlike its European competitors, its marketing costs are zero. The Neobank relies solely on word of mouth and appears to be working in Brazil.
It must be said that the clientele was there from the beginning: the number of residents who do not have access to the traditional banking system is 60 million and Nubank is delighted with its free and accessible offers. In fact, Brazil, with its 110 million assets, only has 50 million people with checking accounts and bank cards.
Among the fintech companies that have grown exponentially in size, Nubank is nowhere near behind. Currently is his The valuation is estimated at over $ 30 billion, already five billion more than in the previous estimate five months ago. A year ago it exceeded 25 million users, 15 million fewer than today.
To achieve such feats, Nubank also turned to Mexico and Colombia. In Brazil, it is further strengthening its offering: in addition to trading, loans and insurance have also arrived (it bought the Easynvest platform in September, its third acquisition of the year).
The Buffett symbol
Long-term investor star Warren Buffett had never invested in an online bank, let alone a neo bank that started from scratch. For the company as for the industry, this capital injection is called Validation of a model and a market versus traditional banks and new payment fintechs.
In finance, Berkshire Hathaway has Goldman Sachs, American Express, and even risk management solutions provider Moody’s on its asset list. The company is very little known in the IT world, but is obviously still known for being a shareholder in the Apple company, of which it now owns 5.32%.